# The Building Societies (Accounts and Related Provisions) Regulations 1992, Paragraph 1: Statutory ratios and percentages


(1) Subject to the following provisions of this paragraph, the annual business statement of a society shall state, as at the end of the financial year with which it deals, the following ratios and particulars:
(a) a ratio showing—
(i) as its first quantity, non-retail funds and deposits as a percentage of shares and deposits, and
(ii) as its second quantity, the relevant statutory limit for that percentage;
(b) a ratio showing—
(i) as its first quantity, deposits as a percentage of shares and deposits, and
(ii) as its second quantity, the relevant statutory limit for that percentage;
(c) advances secured on residential property as a percentage of total commercial assets;
(d) advances secured on land other than residential property as a percentage of total commercial assets;
(e) a ratio showing—
(i) as its first quantity, commercial assets other than advances secured on land as a percentage of total commercial assets, and
(ii) as its second quantity, the relevant statutory limit for that percentage; and
(f) a ratio showing—
(i) as its first quantity, the aggregate of the assets to which paragraphs (d) and (e)(i) refer as a percentage of total commercial assets, and
(ii) as its second quantity, the relevant statutory limit for that percentage.
(2) The annual business statement shall include an explanation of what is represented by—
(a) each of the quantities specified in subparagraph (1);
(b) the description of advances referred to in—
(i) subparagraph (1)(c), and
(ii) subparagraph (1)(d); and
(c) each of the relevant statutory limits specified in subparagraph (1).
(3) In subparagraph (1)—
(a) in paragraph (a), the first quantity shall be shown in accordance with subsection (3) of section 7 of the Act (power to raise funds and borrow money) and accordingly—
(i) “non-retail funds and deposits” means liabilities of the society in respect of its non- retail funds and deposits less those of them which are among the particular liabilities to which subsection (14) of that section refers, and
(ii) “shares and deposits” means the total liabilities of the society in respect of shares and deposits less the particular liabilities to which subsection (14) of that section refers;
(b) in paragraph (b), the first quantity shall be shown in accordance with subsection (1) of section 8 of the Act (proportion of liabilities to be in form of shares) and accordingly—
(i) “deposits” means the amount of the principal of, and interest payable on, sums deposited with the society less that part of it which comes within the particular liabilities to which subsection (2) of that section refers, and
(ii) “shares and deposits” means the aggregate of the principal of, and interest payable on, sums deposited with the society and the principal value of, and interest payable on, shares in the society less the particular liabilities to which subsection (2) of that section refers;
(c) in paragraph (c), “advances secured on residential property” means those commercial assets which are class 1 assets for the purpose of the requirements of Part III of the Act for the structure of commercial assets;
(d) in paragraph (d), “advances secured on land other than residential property” means those commercial assets which are class 2 assets for the purpose of the requirements of Part III of the Act for the structure of commercial assets; and
(e) “relevant statutory limit” shall be construed—
(i) subject to subparagraph (ii), in accordance with section 36 of the Act (powers in event of breach of limits), and
(ii) where the relevant statutory limit imposed by subsection (2) (or (3))
of section 20 (commercial asset structure requirement) in respect of a particular financial year of a society is the amount imposed by paragraph (b) of that subsection, as if that amount were expressed as a percentage of the total commercial assets of the society as at the end of that financial year.
(4) Where relevant rules are in force so as to attribute to a society assets or liabilities of a body corporate associated with it, the ratios and particulars required to be shown by this paragraph shall be shown so as to take that attribution into account, and—
(a) where such relevant rules make provision for the disregarding of assets or liabilities of the society, those ratios and particulars shall be shown so as to take that provision into account, and
(b) in this paragraph “relevant rules” means—
(i) aggregation rules under section 7(10), 8(3) or 20(9) of the Act, or
(ii) rules approved under section 7(13), 8(5)
or 20(12) of the Act.

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Source: https://www.legislation.gov.uk/uksi/1992/359/schedule/9/paragraph/1 (the official version)
Page: https://openlegislation.uk/building-societies-accounts-and-related-provisions-regulations-1992/schedule-9/paragraph-1
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.